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Google denies leaving China

Google has denied Chinese blog and media reports that it has already decided to close its offices in China.

Google said yesterday that it is still in the process of scanning its internal networks since a cyber-attack in mid-December and it would hold talks with the Chinese government over the next few weeks.

The search giant has entered a second week of high stakes brinkmanship with China’s government after saying last week it was thinking about quitting China following a sophisticated cyber-attack on its network that resulted in theft of its intellectual property.

The company has said it is no longer willing to filter content on its Chinese language google.cn engine, and will try to negotiate a legal unfiltered search engine, or exit the market.

Most of the filters on google.cn were still in place yesterday, though controls over some searches, incl-uding the 1989 Tiananmen crackdown, appear to have been loosened.

China has tried to play down Google’s threat to leave, saying there were many ways to resolve the issue, but insisting all foreign companies, Google included, must abide by Chinese laws.

Analysts say Google’s bold move may backfire as signs emerge the firm has already damaged its prospects in China regardless of whether it carries out its threat to quit the country.

JP Morgan analyst Dick Wei said he thinks Google’s relationship with the Chinese government is already strained and if the company decides to stay, it could be subject to tighter regulations.

UBS analyst Wang Jinjin also believes Google’s relationship with advert-isers has been damaged as a result of the threat and that they will choose Baidu over the firm.

Categorized | Business News

Tags : china, chinese, country, over-the-firm, over-the-next, place-yesterday, though-controls, uding-the-1989

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Google denies leaving China

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